Could Hindustan Unilever conquer the hair oil segment with Indulekha?

By Michelle Yeomans

- Last updated on GMT

Could Hindustan Unilever conquer the hair oil segment with Indulekha?

Related tags Shampoo

Hindustan Unilever is reported to be in 'advanced talks' for ayurvedic hair care brand Indulekha, a potential deal which would see the company re-enter the hair oil segment following the sale of its Nihar range in 2006.

The Indulekha brand, owned by 'Mosons Extractions' includes a hair oil and shampoo, a skin care oil and cream and an Acrot Natural Face Mask.

If the deal goes ahead, it would be the first acquisition for Hindustan Unilever in more than a decade. 

The Indian hair care market, which comprises hair oil, shampoos, hair colorants, conditioners, and styling agents, has shown strong growth over the past few years, and set to continue to shine.

The hair oil segment is quite lucrative, but analysts reckon that companies looking to succeed in the sector must already have significant market presence.

According to livemint.com, if the deal goes ahead, Unilever will buy all products under the Indulekha brand, which could gel with its current Ayush services business, which is relatively small compared to the size of its other big brands.

Hair care success in India

As consumers in India become more conscious about their appearance, it is having a knock on effect on the country’s hair care market.

As with many other cosmetics markets across the globe, conscious consumers are concerned about how they look is one of the driving trends in the market.

“Various factors, such as a shift in consumer behavior, growing purchasing power, gradually changing lifestyle, and product awareness continue to fuel growth in this market,”​ says market researcher, RNCOS.

A rising western culture's influence and robust media promotion are major factors attributed to be the driving force of the cosmetics sector in India.

Rising purchasing power and growing fashion consciousness in the country are likely to contribute majorly to the growth, which is anticipated to register a CAGR of around 17 per cent during 2011-2015.

Related topics Business & Financial Hair Care

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